- NBFCs with an asset size of ₹1,00,000 crore and above (based on the latest audited balance sheet) will now be automatically classified as Upper Layer (NBFC‑UL).
- This replaces the earlier parametric scoring system (70% quantitative + 30% qualitative factors), simplifying supervision.
- The Top 10 NBFCs by asset size will always remain in the Upper Layer, ensuring consistent oversight.
- The move aims at enhanced regulatory scrutiny of systemically important NBFCs, covering governance, capital, exposure, and disclosure norms.
- Large players like REC (Rural Electrification Corporation) and PFC (Power Finance Corporation) are impacted, though government‑owned NBFCs get limited exemptions (e.g., from mandatory listing).
- This step strengthens the framework for financial stability while streamlining regulation of India’s largest NBFCs.
Question:
Q.1 Under the revised Scale-Based Regulation (SBR) framework, an NBFC with an asset size of at least ________ will automatically be classified as an Upper Layer (NBFC-UL) entity.a) ₹25,000 crore
b) ₹50,000 crore
c) ₹75,000 crore
d) ₹1,00,000 crore
Answer: d) NBFCs having an asset size of ₹1,00,000 crore or more, based on the latest audited balance sheet, will automatically fall under the Upper Layer (NBFC-UL).
